Summus Capital OÜ successfully places a new bond offering in the amount of EUR 15 million

13:59 6.06.2024

Leading Baltic real estate investment company Summus Capital OÜ successfully raised EUR 15 million in a private bond placement with a fixed coupon rate of 9.5% and maturity of 3 years.

Total demand for the bonds reached nearly EUR 20 million, with more than 100 investors participating in the bond offering and the offering of EUR 15 million was oversubscribed 1.3 times. Latvian investors accounted for 75% of the total demand, while Estonian investors contributed with 11%.

Aavo Koppel, Member of the Board of Summus Capital: “Summus Capital OÜ’s new bond issue has been a notable success, attracting significant interest from both private and institutional investors. The Group values the benefits from its presence in the capital markets and a broad and diverse investor base. The new bond issue of EUR 15 million will be used to refinance the Group’s existing bonds in the amount of EUR 10 million and to finance other general purposes of the Group – primarily, acquisitions of new investment properties. The Group appreciated the continued trust of existing investors who participated in the exchange offer. Overall, nearly EUR 5 million of demand came from existing investors, while EUR 14.8 million was contributed by 68 new investors.”

“The strong track record of recent Baltic bond issues demonstrates that local investors are keen to invest in the bonds of well-established and financially stable industry leaders, explaining the success of Summus Capital bond issue. We are particularly pleased that more than 75% of the demand came from investors from Latvia,” says Kristiāna Janvare, the Managing Director of Investment Banking of AS Signet Bank.

Due to considerable oversubscription, the bonds were allocated to investors, observing the following principles: first, all existing bondholders who participated in the exchange offer received a full allocation; second, all investors were allocated a minimum amount of EUR 100,000; third, the remaining bonds were allocated observing the proportionality principle to the extent possible with the goal to create a solid and diversified investor base.

During the offering, Summus Capital OÜ offered its existing bondholders of bonds maturing on 18 June 2024 (ISIN LV0000802478) to exchange their bonds for the new bonds. Approximately 50% of the existing bondholders, holding bonds in the amount of EUR 4 953 000, decided to participate in the exchange offer, as a result of which the issue size of LV0000802478 bonds will be reduced to EUR 5 047 000, and the respective bonds will be redeemed at maturity.

Summus Capital OÜ plans to request admission to trading of the bonds on Nasdaq Riga First North Bond List shortly after the issue date.

Summus Capital OÜ bonds have a maturity of three years with a fixed interest rate of 9.5%. The first settlement date of the bonds is 11 June 2024 and bondholders will receive a quarterly coupon payment (interest) with the first coupon payment on 11 September 2024.

AS Signet Bank acted as the Arranger of the bond offering, while LHV Pank AS acted as the sales agent in Estonia.